Multiple Choice
Jamie started his own plumbing business and put £3000 in the bank account and then used £ 2 500 to buy a van. Which of the following represent the correct entries in relation to these transactions?
A) Increase the bank account by £3000 and the van account by £ 2 500
B) Increase the bank account by £3000 and the van account by £ 2 500 and put £5 500 in the owners' equity account
C) Increase the bank account by £3000 and the owners' equity account by £3000 then reduce the bank account by £2 500 and increase the van account by £ 2 500
D) Increase the bank account by £3000, the van account by £2 500 and decrease the bank account by £2 500
E) Increase the bank account by £3000 and owners' equity account by £3000 and put the £2 500 in the van account
Correct Answer:
Verified
Correct Answer:
Verified
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Q3: An increase in assets can only arise
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Q6: A reduction in equity must be accompanied
Q8: The following amounts have been paid out
Q9: The following amounts have been paid out
Q10: A pre-condition or classifying anything as an
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